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FACILITY CLOSURE
3 Months Ended
Mar. 29, 2014
Restructuring and Related Activities [Abstract]  
FACILITY CLOSURE
FACILITY CLOSURE

HOGANSVILLE DISTRIBUTION FACILITY
    
In connection with the plan to close the Hogansville distribution facility, the Company recorded the following charges in selling, general, and administrative expenses:
 
Fiscal quarter ended
(dollars in millions)
March 29, 2014
 
March 30, 2013
 
 
 
 
Severance
$

 
$
0.4

Accelerated depreciation

 
0.1

Other closure costs

 
0.1

Total
$

 
$
0.6



The following table summarizes restructuring reserves related to the closure of the Hogansville facility which are included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet as of March 29, 2014:
(dollars in thousands)
Severance
 
Other closure costs
 
Total
Balance at December 28, 2013
$
1.2

 
$
0.1

 
$
1.3

Provision

 

 

Payments
(1.2
)
 
(0.1
)
 
(1.3
)
Balance at March 29, 2014
$

 
$

 
$



As of March 30, 2013, restructuring reserves were approximately $2.5 million.
   
OFFICE CONSOLIDATION    

In connection with the Company's plan to consolidate into a new headquarters facility in Atlanta, Georgia, the Company recorded the following charges in selling, general, and administrative expenses:
 
Fiscal quarter ended
(dollars in millions)
March 29, 2014
 
March 30, 2013
Severance and other benefits
$
0.6

 
$
1.8

Accelerated depreciation

 
1.3

Other Closure Costs
1.4

 
4.9

Total
$
2.0

 
$
8.0


The following table summarizes restructuring reserves related to the office consolidation which are included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet as of March 29, 2014:
(dollars in thousands)
Severance
 
Other closure costs
 
Total
Balance at December 28, 2013
$
4.7

 
$
1.7

 
$
6.4

Provision
0.6

 
0.9

 
1.5

Payments
(1.7
)
 
(0.5
)
 
(2.2
)
Balance at March 29, 2014
$
3.6

 
$
2.1

 
$
5.7



As of March 30, 2013, restructuring reserves were approximately $4.0 million.

The Company has substantially completed its consolidation efforts as of December 28, 2013, and the severance accrual is expected to be substantially paid by the end of fiscal 2014. The Company expects to incur approximately $3.0 million in additional costs in fiscal 2014 in connection with the office consolidation.

JAPAN RETAIL OPERATIONS

In the fourth quarter of 2013, the Company made the decision to exit retail operations in Japan based on revised forecasts which do not meet the Company's investment objectives. As of March 29, 2014, the Company's retail operations in Japan generated sales of approximately $4.4 million and an operating loss of $1.1 million, including exit costs/benefits. In connection with the plan to exit these operations, the Company recorded approximately $0.6 million of accelerated depreciation in selling, general, and administrative expenses in the fiscal quarter ended March 29, 2014 and approximately $1.0 million in cost of goods sold related to a favorable recovery on inventory. There were no such exit costs related to Japan recorded in the fiscal quarter ended March 30, 2013.

The following table summarizes restructuring reserves related to the exit of retail operations in Japan, which are included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet as of March 29, 2014:

(dollars in thousands)
Severance
 
Other closure costs
 
Total
Balance at December 28, 2013
$
0.9

 
$
2.0

 
$
2.9

Provision
0.7

 
(0.7
)
 

Payments
(0.4
)
 
(0.4
)
 
(0.8
)
Balance at March 29, 2014
$
1.2

 
$
0.9

 
$
2.1



The Company expects to incur approximately $1.2 million of additional costs in fiscal 2014 in connection with the exit of retail operations in Japan. Payments under the accruals as of March 29, 2014 are expected to be paid by the end of fiscal 2014.